The Sheffield College chief calls for FE funding boost ahead of autumn budget

The Sheffield College is calling on the government to invest in the further education sector ahead of this month’s autumn budget.

Around 172 college leaders, representing 1.6 million students nationally, have written to the Chancellor of the Exchequer Rt. Hon Rachel Reeves in an open letter.

Organised by the Association of Colleges, which represents the further education sector, the letter draws attention to a series of pressing funding challenges.

Angela Foulkes CBE, Chief Executive and Principal, The Sheffield College, one of the signatories to the letter, said: “Colleges are at the heart of their local communities and central to the government’s ambitions for getting the economy back on track.

“We are proud of our place in the city and industry expertise, training our students in the skills that employers and the economy need from computer scientists and construction experts to health and social care workers and police officers.

“Colleges are well positioned to educate the workforce in urgent skills gaps including the green curriculum and public services but we need fair funding to do that properly.

“Right now, there are some simple steps that the government could take to demonstrate their commitment to investing in our sector and students, and which involve addressing some glaring inequalities affecting colleges compared to schools.”

College leaders are lobbying the government on three key priorities in the run up to the autumn budget, which will be announced in Parliament on 30th October 2024.

• Funding for in-year growth to support the significant demographic increase in the number of 16 to 18-year-olds.

• A pay award to end the average £9,000 pay gap between college and schoolteachers, which is hampering further education recruitment in key sectors such as construction, engineering and health and social care.

• An exemption from value added tax (VAT). Unlike schools, colleges are not covered by the VAT refund scheme even though they are classed as public sector organisations with strong social inclusion and public service roles.

An exemption from value added tax (VAT). Unlike schools, colleges are not covered by the VAT refund scheme even though they are classed as public sector organisations with strong social inclusion and public service roles.

Altogether, colleges nationally spend an estimated £210 million on VAT which amounts to 3% of their income that is not reimbursed. The figure is around £4 million a year for The Sheffield College.

In line with other national trends, the college has seen a rise in student numbers following a significant demographic increase this year.

“We have been proactive in recruiting colleagues from industry and supporting them to retrain as lecturers,” added Angela Foulkes.

“Dual professionals – teaching staff who have industry skills and expertise – have valuable experience and knowledge which helps our students go further.

“It is increasingly difficult to recruit and retrain lecturers in construction, engineering and digital industries. Salaries for FE lecturers are not competitive with industry.  Neither are they competitive with schools and universities.

“If colleges were exempt from VAT, we would be able to prioritise pay awards for staff that enable us to be more competitive with industry, schools and universities, and to continue to give all of our students an amazing experience.”

The Sheffield College offers a wide range of academic, vocational and technical qualifications from pre-entry through to degree level.

Educating and training around 14,500 students and apprentices a year, the college works with more than 1,500 employers.

Pictured: Angela Foulkes CBE, Chief Executive and Principal, The Sheffield College.